Pernod’s Xclamat!on to raise competition in premium alcobev; Radico still top pick: Karan Taurani

Pernod Ricard’s return to product innovation with the launch of its new Xclamat!on spirits range is expected to intensify competition in India’s fast-growing premium alcohol segment, though the near-term impact on incumbents is likely to be gradual, said Karan Taurani, Executive Vice-President at Elara Securities.

Speaking to ET Now, Taurani said the launch marks Pernod’s first major new product series in several years, after a prolonged focus on renovating existing brands. The Xclamat!on range spans vodka, gin, whisky and tequila, positioned in the upper-prestige price segment, rather than ultra-luxury.

“This is a positive step from Pernod in terms of innovation. It increases competitive intensity in branding and premiumisation, especially in the upper-prestige category,” Taurani said.

Pricing, rollout and market size

The Xclamat!on range is priced at around ₹1,000–₹1,200 in northern states, with a phased rollout starting in Uttar Pradesh and Haryana, followed by Maharashtra and Karnataka. In western markets, Taurani expects pricing to align closer to the ₹1,500 upper-prestige band.
The products will compete with brands such as Royal Ranthambore, Blenders Pride Reserve, Black Dog and Black & White, as well as entry-level luxury Scotch offerings.

India’s spirits market is estimated at 440 million cases, of which whisky alone accounts for 200–250 million cases. Upper-prestige and luxury segments form 15–20% of volumes, but are growing at 20–25% annually and deliver significantly higher margins.
“This is a reasonably large, fast-growing segment with premium margins, which explains the renewed focus from global players,” Taurani said.

Stock preferences: Radico leads on innovation

Despite the renewed competitive push from Pernod, Taurani said Radico Khaitan remains Elara’s preferred stock in the alcobev space, driven by sustained brand innovation.

“Radico has launched 12–13 new IPs over the past few years, including Royal Ranthambore, Jaisalmer, Rampur and Morpheus. No other player—global or domestic—has matched that pace,” he said.

Elara maintains a reduced rating on United Spirits and United Breweries, citing near-term concerns around Maharashtra excise duty hikes and supply pressures affecting mass brands such as McDowell’s No.1.

India-UK FTA to accelerate premiumisation

Taurani said the India-UK free trade agreement (FTA) will be structurally positive for the sector, particularly luxury spirits. While import duties on Scotch are being halved, the actual MRP impact is around 15–20%, enough to accelerate premium consumption.

“Luxury volumes could move from 20% growth to 25–30% over the medium term,” he said.

The FTA will also lower costs of bulk Scotch imports, translating into a potential 4–6 percentage point EBITDA uplift across alcobev companies.

United Spirits (USL) is expected to see the strongest volume acceleration due to its Scotch-heavy portfolio, though margin expansion may remain capped due to arrangements with parent Diageo, Taurani added.

Quick commerce: Near-term noise, medium-term opportunity

On the quick-commerce space, Taurani remains constructive over the medium term, despite near-term concerns around fundraising-led competition and discounting.

“The worst of the price war is likely behind us. New entrants like Amazon and Flipkart are entering defensively, not to disrupt pricing,” he said.

Elara prefers Blinkit, citing its scale, execution strength and relatively lower EBITDA losses. Taurani expects the sector to gradually move toward profitability as IPO-bound players moderate discounting.

Overall, Taurani said India’s alcobev sector remains well-positioned for premium-led growth, aided by innovation, trade reforms and rising aspirational consumption, even as competition intensifies in key price segments.